Liquidation Preference Management Sales 
VC Cafe
OCTOBER 31, 2022
Generally speaking, emerging managers who invest early stage, are potential hedge for this as they’re less correlated with the public market, according to Cambridge Associates. Liquidation preferences – in addition to lower valuations, investors are looking for protective provisions. What is a founder to do?
Both Sides of the Table
JANUARY 21, 2010
Consider it a sales & marketing expense for them. How to manage costs - One of the biggest frustrations that people have with lawyers are unexpected costs. You need to know how liquidations preferences work. Most lawyers that work with startups are willing to work on a deferred payment schedule.
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Gust
MAY 24, 2012
By contrast, venture capital and angel investments normally take the form of Preferred Stock with rights and preferences set forth in the company’s Certificate of Incorporation and other governance documents.
Both Sides of the Table
FEBRUARY 23, 2015
So it could be that a sale would yield you seven figures and you could move on to your next role but the CEO wants to “go big or go home” and sometimes go home is the outcome. In many cases a company could or should be sold early and this can reap great rewards for the executive team and early investors.
Steve Blank
MARCH 16, 2016
As the company goes from searching for a business model to growth , only then will they bring in a new “professional” management team to scale the company (along with a business development executive to search for an acquirer) or prepare for an IPO. Do you wait 7 years until you’ve built enough revenue for a billion-dollar sale?
Tim Keane
JANUARY 12, 2010
Good investors use the valuation discussions to gauge the business savvy of the management team and to understand their ability to appreciate and deal with economic market forces that set values. For individual angels and others investing their own money, this may be more fluid than for someone with responsibility for a managed fund.
Both Sides of the Table
SEPTEMBER 6, 2010
If Ventro was worth $8 billion on $2 million of sales surely a paltry $1 billion would suffice. Options are obviously a very important economic motivator for your first 3-5 employees and your most senior management team. Whatever the intent of the dialog let me encourage all management teams to be transparent with their employees.
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